A Comparison of Market Economy and Planned Economy: Based on German Democratic Republic and Federal Republic of Germany

Research Article
Open access

A Comparison of Market Economy and Planned Economy: Based on German Democratic Republic and Federal Republic of Germany

Baichuan Cui 1*
  • 1 Insight Academy of Canada, Tai Yuan, Shan Xi province    
  • *corresponding author 160205202@stu.cuz.edu.cn
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/17/20231103
AEMPS Vol.17
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-77-5
ISBN (Online): 978-1-915371-78-2

Abstract

The economic confrontation between East and West Germany is one of the key topics. Researchers have reached a consensus that the market economy of the Federal Republic of Germany (FRG) is more superior and more realistic than the planned economy in German Democratic Republic (GDR). However, the research still lacks a persuasive explanation about the deep and essential reason why market economy is better than command economy. Also, there are debates about the practical application and future extension of two economic formats. Thus, the study allocates and compares the international relations, important statistic and divergent economy systems of two Germanies, attempting to address these research gaps based on the fait accompli in GDR and FRG. The research outcomes illustrate that in all three domains did market economy in FRG overwhelmed planned economy in GDR, while the command economy also showed strength in particular areas. The outcome of the research indicates that market economy is more superiors and more functional in a macroscopic aspect than planned economy. To be specific, market economy obtains the strengths of developed productivity, a free market with countless chances, the opportunities to compete freely with high rewards and the ability of continuingly creating wealth to the society, while planned economy protects and promotes the equivalence of the distribution of social wealth. Based on it, the emergence of a highly integrated economy is forecasted, which is a combination of market economy and command economy but the main part is market economy.

Keywords:

international relations, important statistic, divergent economy systems, GDR, FRG, market economy, planned economy, practical application, future extension

Cui,B. (2023). A Comparison of Market Economy and Planned Economy: Based on German Democratic Republic and Federal Republic of Germany. Advances in Economics, Management and Political Sciences,17,233-240.
Export citation

References

[1]. Qi Jiang , Jiujiu Yu. On the economic differences between east and west Germany after the war. Eastern Europe and Central Asia today (03),1-6. doi:CNKI:SUN:ELSY.0.1995-03-000. (1995).

[2]. East Germany. https://en.wikipedia.org/wiki/East_Germany. last accessed 2022/10/27.

[3]. Komlos, J., & Kriwy, P. The biological standard of living in the two Germanies. German Economic Review, 4(4), 459-473. (2003).

[4]. Admin. (2015). Difference Between Planned Economy and Market Economy https://www.differencebetween.com/difference-between-planned-economy-and-vs-market-economy/

[5]. GDP per capita. https://upload.wikimedia.org/wikipedia/commons/b/b7/GDP_per_capita_East_Germany.png. last accessed 2022/10/27.

[6]. By Midofe - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=93665423 Growth of GDP per capita. last accessed 2022/10/27.( 1996)

[7]. Yan Fang.(1987). Some Problems on the Comparison between East and West Germany. Today's Soviet Union and Eastern Europe (01),39-41. doi:CNKI:SUN:ELSY.0.1987-01-010.

[8]. Boguszewski, J. Growth and Productivity in Industry and Its Principal Sectors in the FRG, Austria, Poland, and Hungary, 1960-72. Eastern European Economics, 18(2), 3-75. (1979).

[9]. SZYDLIK. Incomes in Planned and a Market Economy: The Case of the German Democratic Republic and the “Former” Federal Republic of Germany. European Sociological Review, 10(3), 199–217. https://doi.org/10.1093/oxfordjournals.esr.a036333. (1994).

[10]. Zacher. Social Market Economy, Social Policy, and the Law. Zeitschrift Für Die Gesamte Staatswissenschaft, 138(3), 367–388. (1982).

[11]. Zacher. Social Market Economy, Social Policy, and the Law. Zeitschrift Für Die Gesamte Staatswissenschaft, 138(3), 367–388. (1982).

Cite this article

Cui,B. (2023). A Comparison of Market Economy and Planned Economy: Based on German Democratic Republic and Federal Republic of Germany. Advances in Economics, Management and Political Sciences,17,233-240.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-77-5(Print) / 978-1-915371-78-2(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.17
ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

References

[1]. Qi Jiang , Jiujiu Yu. On the economic differences between east and west Germany after the war. Eastern Europe and Central Asia today (03),1-6. doi:CNKI:SUN:ELSY.0.1995-03-000. (1995).

[2]. East Germany. https://en.wikipedia.org/wiki/East_Germany. last accessed 2022/10/27.

[3]. Komlos, J., & Kriwy, P. The biological standard of living in the two Germanies. German Economic Review, 4(4), 459-473. (2003).

[4]. Admin. (2015). Difference Between Planned Economy and Market Economy https://www.differencebetween.com/difference-between-planned-economy-and-vs-market-economy/

[5]. GDP per capita. https://upload.wikimedia.org/wikipedia/commons/b/b7/GDP_per_capita_East_Germany.png. last accessed 2022/10/27.

[6]. By Midofe - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=93665423 Growth of GDP per capita. last accessed 2022/10/27.( 1996)

[7]. Yan Fang.(1987). Some Problems on the Comparison between East and West Germany. Today's Soviet Union and Eastern Europe (01),39-41. doi:CNKI:SUN:ELSY.0.1987-01-010.

[8]. Boguszewski, J. Growth and Productivity in Industry and Its Principal Sectors in the FRG, Austria, Poland, and Hungary, 1960-72. Eastern European Economics, 18(2), 3-75. (1979).

[9]. SZYDLIK. Incomes in Planned and a Market Economy: The Case of the German Democratic Republic and the “Former” Federal Republic of Germany. European Sociological Review, 10(3), 199–217. https://doi.org/10.1093/oxfordjournals.esr.a036333. (1994).

[10]. Zacher. Social Market Economy, Social Policy, and the Law. Zeitschrift Für Die Gesamte Staatswissenschaft, 138(3), 367–388. (1982).

[11]. Zacher. Social Market Economy, Social Policy, and the Law. Zeitschrift Für Die Gesamte Staatswissenschaft, 138(3), 367–388. (1982).

For authors
Guide for authors Policies for authors Aims and scope Subscription Open access policy
For editors
Policies for editors Editorial board
For reviewers
Policies for reviewers Privacy policy

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.